US manufacturing investment stumbles as clean tech cancellations pile up

Source: techcrunch
Author: Tim De Chant
Published: 8/28/2025
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Read original articleIn the second quarter of 2025, U.S. clean tech manufacturing investments experienced a notable decline, with cancellations outpacing new project announcements for the first time in recent history. According to a report from the Rhodium Group and MIT, companies cancelled $5 billion worth of clean tech projects, primarily battery factories, while only $4 billion in new investments were announced. This represents a 15% drop in actual clean tech manufacturing investments. The downturn follows legislative changes under the "One Big Beautiful Bill," which weakened key components of the Inflation Reduction Act by reducing incentives such as production tax credits and dampening demand for electric vehicles. Earlier cancellations in Q1 were mostly related to electric vehicle production, whereas Q2 saw battery manufacturing projects bearing the brunt of cancellations, despite battery manufacturing still driving $8 billion in new investments.
This pullback in clean tech mirrors a broader contraction in U.S. manufacturing investment overall. Data from the U.S. Bureau of Economic Analysis shows that spending on new manufacturing
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energyclean-technologybattery-manufacturingelectric-vehiclesUS-manufacturinginvestment-trendsInflation-Reduction-Act